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ANEK [815]
3 years ago
8

Hodgkiss Mfg., Inc., is currently operating at only 92 percent of fixed asset capacity. Current sales are $780,000. Fixed assets

are $470,000 and sales are projected to grow to $880,000. How much in new fixed assets are required to support this growth in sales? Assume the company wants to operate at full capacity. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
EleoNora [17]3 years ago
4 0

Answer:

$17,835.90

Explanation:

Currently Hodgkiss is operating at 92% of its fixed asset capacity, so they have an spare 8% to grow without adding any more fixed assets: ($780,000 / 92) x 100 = $847,826.09.

So they need to add fix assets in to increase its production by $32,173.91 (= $880,000 - $847,826.09).

Every dollar spent in fixed assets generates at full capacity $1.8039 in production output (= $847,826 / $470,000).

If they want to increase production by $32,174, they will need to spend $17,835.90 in fixed assets.

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All Kiwi Ltd (a New Zealand-based company) has a wholly-owned subsidiary in Malaysia whose manager is being evaluated on the bas
Ulleksa [173]

Answer:

Variance (Unfavorable) (NZD 340,000)

Explanation:

Budget Variance using exchange rate projected at the time of budget

                   Budget        Actual        Variance   Exc. Rate   Variance in NZD

                    MYR            MYR

Revenue  12000000   11000000    -1000000      0.34            -340000

Expenses  9000000   9000000          0               0.34                  0

Profit        3000000    2000000    -1000000      0.34            -340000

7 0
3 years ago
last year, jarod left a job that pays $80,000 to run his own bike repair shop. jarod’s shop charges $65 for a repair, and last y
irinina [24]

The accounting profit of Jarod based on the information regarding rent, wages, etc given will be $55000.

It should be noted they the formula for calculating accounting profit will be:

= Total revenue - Explicit cost

Total revenue will be:

= $65 × 4000

= $260,000

Explicit cost is the direct cost that a business spends. This will be:

= $60000 + $120000 + $25000

= $205,000

Therefore, the accounting profit will be:

= $260000 - $205000

= $55,000

The accounting profit is $55000.

Read related link on:

brainly.com/question/25373796

6 0
2 years ago
On January 1, 20X7, Poke Corporation acquired 25 percent of the outstanding shares of Shove Corporation for $100,000 cash. Shove
maria [59]

Answer:

$18,750

Explanation:

Income from investment = 25% * $75,000

Income from investment = 0.25 * $75,000

Income from investment = $18,750

The amount that will be reported by Poke as income from its investment in Shove for 20X8, if it used the equity method of accounting is $18,750

4 0
2 years ago
On January 1, Year 1, Gemstone Mining Company (GMC) paid $10,500,000 cash to purchase a stone pit estimated to hold 50,000 tons
Varvara68 [4.7K]

Answer:

Cost of Mining Stone pit = $10,500,000

Salvage value at the end of third year = $500,000

Total expected mining during the life = 50,000 tonnes

Depletion per tonne = (cost - salvage) ÷ total expected mining

                                 = (10,500,000 - 500,000) ÷ 50,000

                                 = $200 per tonne

Stone extracted during the year = 10,000 tonnes

Depletion expense of Year 1 = 10,000 tonnes @ 200 per tonne

                                                = $2,000,000

JOURNAL ENTRY:

Depletion expense A/c  Dr.                        $2,000,000

To  Accumulated Depletion- Mining rights                    $ 2,000,000

(To record depletion expense for Year 1)

6 0
3 years ago
Which of the following is true about a "credit"?a) It is part of the double-entry procedure that keeps the accounting equation i
Sav [38]

Answer:

All of them.

Explanation:

Accounting systems are designed to show the increases and decreases in each financial statement item as a separate record. This record is called an account. In the T account, the debit is on the left and the credit is on the right.

The equity for credits and debits for each transaction is build into the accounting equation: assets = liabilities + equity. Because of this doble equality, this system is called double entry accounting system.

In balance sheet accounts:

-asset accounts debit for increases and credit for decreases.

-liability accounts debit for decreases and credit for increases.

-equity accounts debit for decreases and credit for increases.

6 0
3 years ago
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